Navigating Exchange Control: A Comprehensive Guide by Mayet & Associates

In today’s interconnected world, transferring money across international borders has become integral to global commerce. However, with the increasing complexities of regulatory environments, understanding the nuances of exchange control has never been more critical. At Mayet & Associates, we are committed to shedding light on intricate legal matters affecting businesses and individuals. This comprehensive guide delves into exchange control, offering insights and expertise to help you navigate this complex landscape.

Understanding Exchange Control: Unveiling the Basics

Exchange control refers to the regulations and mechanisms governments impose to monitor and manage the movement of capital in and out of a country. These controls safeguard a nation’s financial stability, manage currency fluctuations, and ensure economic stability.

Key Considerations for Individuals

For individuals, exchange control regulations can impact various financial activities, such as:

  1. Foreign Investments: Investing in foreign assets or securities may be subject to approval from regulatory authorities. Our experts can guide you through the necessary procedures to ensure compliance.
  2. International Remittances: Transferring funds to family members or entities abroad might be subject to limits and reporting requirements. We can help you understand the thresholds and documentation needed for smooth transactions.
  3. Emigration and Immigration: Moving across borders involves navigating intricate financial regulations. Our team can assist you in understanding the financial aspects of emigration or immigration.

Navigating Exchange Control for Businesses

Businesses engaging in international trade and investment face additional layers of complexity:

  1. Import and Export Regulations: Cross-border trade requires compliance with import and export regulations. We can provide insights into the necessary permits, licenses, and documentation.
  2. Foreign Exchange for Trade: Managing currency fluctuations is crucial for businesses engaged in international trade. Our experts can help you develop strategies to mitigate risks and optimize foreign exchange transactions.
  3. Foreign Borrowings and Investments: Accessing foreign capital markets or investing abroad demands a thorough understanding of regulatory frameworks. We offer guidance to streamline these processes.

Exchange Control in Lesotho

Exchange control in Lesotho is regulated under the following pieces of legislation:

  • Exchange Control of Order of 1987; and
  • Exchange Control Regulations of 1989

The regulating authority in this instance is the Central Bank of Lesotho.

The abovementioned pieces of legislation were enacted in order to regulate dealings in the following:

  • Gold;
  • Foreign and local currency; and
  • Security (in stocks and shares);

Foreign exchange in Lesotho can be defined as any currency, or means of payment, that is not legal tender in Lesotho. The South African Rand and any other Rand-denominated means of payment is not considered as foreign exchange since it circulates freely in Lesotho amid the Common Monetary Area (CMA) agreement.  The CMA consists of countries such as the Republic of South Africa, the Republic of Namibia, the Kingdom of Eswatini and the Kingdom of Lesotho.

Regulation 3(6) provides that no person may take out of the CMA any bank notes, gold, securities or foreign currency or transfer any shares from the Common Monetary Area to any other place.

Money according to the Act is defined as foreign currency, bills of exchange or negotiable instruments. Security however is defined as “shares, stocks, bonds, debentures, debenture stock, unit certificates and includes any letter or other document conferring or containing any evidence of rights in respect of any security”.

According to the Regulations no person may accept or deal in foreign currency unless he or she is an authorised dealer.  The exception to this rule is if the Minister of Finance provides permission to a person to accept or deal in foreign currency. 

In the Lesotho context, the commercial banks have been appointed as the authorised dealers and as such, exchange control applications must be made to any authorized dealer within the borders of Lesotho.  

According to regulation 3(1), no person may buy or borrow foreign currency or sell or lend foreign currency to any person who is not authorised dealer.

Our Expertise: Your Reliable Partner

At Mayet & Associates, understand the exchange control regulations in Lesotho. Our team of seasoned legal professionals is committed to assisting individuals and businesses in navigating the intricacies of cross-border financial transactions. With our comprehensive knowledge and strategic insights, we aim to make your international ventures efficient, compliant, and successful.


As the global economy evolves, staying informed about exchange control regulations is vital for making sound financial decisions. At Mayet & Associates, we take pride in being your trusted partner in unravelling the complexities of international money transfers. Whether you’re an individual looking to secure your financial future or a business aiming to expand globally, our expertise is your advantage. Contact us today to embark on a compliant and seamless cross-border transaction journey. Our corporate commercial team can provide assistance with regards to applications for exchange control in Lesotho.  Contact us on 00266 2231 2101/ 00266 5888 4288 or send us an email at